What can a valuation expert do for your succession plan?
As the baby boomer generation nears retirement, many business owners are facing a difficult task: succession planning. Should they sell their business to a third-party or pass it on to a family member? With many options to consider, 415 Group Manager Dominic Reolfi, CPA/ABV, MT, explains how a valuation professional can lend support:
As a business owner, working with a valuation expert will help to ensure that you’re not leaving money on the table; or conversely, that you’re not holding out for an unrealistic price. A business advisor can also help you navigate the various tax implications that you may face. For example, if you plan to sell your stock to your children, there could be a tax benefit to sell the business over multiple years compared to all at once.
Often we see business owners wait too long to begin exit planning. I’d say that a good rule of thumb is to start the process at least five years prior to your retirement.
At 415 Group, we have three certified business valuation experts on staff who performed more than 100 valuations within the past year. We also have access to resources to help us determine the value using the factors that this article explores. We look at comparable sales of other similar companies and projected cash flow. Our goal is to provide our clients with all the information they need to make the best decision.